“100-Bagger” Stocks Are On The March! Are We Keeping Pace?

The tragedy with novice investors like you and me is that even when we are handed over stocks certified as potential “100-baggers” by stock pickers of repute, we treat the recommendations with contempt and ignore it.

Instead, we prefer to forage in the bushes and look for “hidden gems”. This way, we fall prey to unscrupulous operators who palm off junkyard stocks to us.

It is no surprise that we remain in a poverty-stricken state throughout our life even while the savvies are basking in great riches.

We need to get out of the rut and respect multi-bagger stocks when they are handed over to us over a platter.

Out of the seven stocks identified as “potential 100-baggers” in Motilal Oswal’s 19th Wealth Creation Study, one stock, DCB Bank, has fallen from grace. Motilal Oswal cannot be blamed for this. DCB Bank was chugging along nicely till it committed the tactical error of announcing an ultra-ambitious expansion plan with no regard for the impact it would have on profitability.

Fortunately, the other six stocks in the list are on the right path so far and are notching up impressive gains.

The average return of the said six stocks is 80%, which is impressive by any standards. If you include DCB Bank, which has given a YoY loss of 22%, the average dips to 65%, which is still quite impressive.

It is notable that in the same period of one year, the Nifty has LOST 8.20%. So, this gives an idea of the extent of out-performance achieved by the 100-bagger stocks.

Tata Elxsi rules the roost with a 207% return. The stock is a favourite of Nilesh Shah of Envision Capital. He opined that the company has a lot of headroom to grow owing to its differentiated business model and niche product offering.

Granules India comes second with 103% gains. This stock is a favourite of Basant Maheshwari owing to its B2B model (it supplies bulk drugs to Mylan) which he claims makes it relatively immune to FDA risks. The stock is also a favourite of several brokerages.

Atul Auto is a favourite of Vijay Kedia. In his latest interview, he explained that the reason for Atul Auto’s slightly sluggish (on a relative basis) performance is because it is consolidating its past stupendous performance (it is a 15-bagger in the past 10 years). Daljeet Kohli has also promised bumper gains from Atul Auto.

The other three stocks, Shilpa Medicare, Aarti Drugs and Suven Lifesciences, are also top-quality powerhouse stocks which are destined to give blockbuster gains to their lucky shareholders.